QAD 2017 Enterprise Edition
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User Guides
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Costing
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Cost Management
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Cost Linking
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Effect of Linking on Product Structure Cost Rollups
Effect of Linking on Product Structure Cost Rollups
Product Structure Cost Roll-Up (13.12.13) uses the costs of an item’s components and any subassemblies to calculate this-level and any lower-level costs.
When cost linking is used, the target site is linked to the source site for active GL costs only. Product Structure Cost Roll-Up recognizes the links for any GL cost set using the standard costing method, regardless of whether the cost set is active or inactive. Since you cannot take advantage of cost linking using a simulation cost set, you should set up an inactive GL standard cost set and use it to prepare costs for future periods instead.
Important: Product Structure Cost Roll-Up does not recognize links when the rollup is performed for current or simulation cost sets. In order to roll up costs correctly for linked items, you must use a GL standard cost set.
When items are linked, the system uses the cost set specified at the GL cost source site to find the cost. If the GL cost record does not exist at the source site, costs are not created and a zero cost value is used for the linked item.
Performing a product structure cost rollup at one site does not roll up costs for a linked subassembly at another site. The GL cost for the subassembly at the source site is used to calculate the parent item’s cost at the inventory site.
Example: Example of Cost Rollup with Linked Costs shows that assembly X at Site 10 uses subassembly A, manufactured at site 20, and component B, held at site 30. Site 20 is the cost source site for subassembly A and site 30 is the cost source site for component B.
Example of Cost Rollup with Linked Costs
At site 20, costs are rolled up for subassembly A in the current cost set and then the updated costs are moved to the GL standard cost set. Updating the GL cost set at site 20 automatically updates the linked GL cost for subassembly A at target site 10. Similarly, updating the GL cost of component B at site 30 automatically updates the linked cost at site 10.
Since assembly X contains linked items, its cost at site 10 must be rolled up for the active GL standard cost set. The system locates the GL cost for subassembly A at site 20 and component B at site 30. These costs are used in the cost calculation.
